India's Top Metal Companies Pledge to Achieve Net-Zero Emissions by 2070

Strategic Insights -

Indian metal companies, including Tata Steel, JSW Steel, and Hindalco Industries, are investing heavily in green technologies and reducing their carbon footprint to meet the country's commitment to achieving net-zero emissions by 2070. The companies are exploring decarbonisation technologies, investing in gas-based power plants, and reducing coal consumption. The Indian government has set a target of 300 million tons per annum (MTPA) crude steel capacity by 2030, with a finished steel production target of 230 MTPA.

Key Takeaways:

  • Tata Steel has collaborated with Carbon Clean Solutions and several startups to explore decarbonisation technologies and has invested in gas-based power plants to utilize waste gases generated from steel operations.
  • JSW Steel has earmarked ₹557 crore to be spent on Best Available Technologies (BAT) for environmental sustainability during FY 2020-21 and plans to invest around ₹10,000 crore in the coming decade to achieve the stated carbon reduction target by FY30.
  • AM/NS India uses the advanced Direct Reduced Iron (DRI) technology that emits lower CO2 than conventional methods of steelmaking and has reduced CO2 emissions per ton by 32% since 2015.
  • Hindalco Industries has committed to net carbon neutrality by 2050 and has a subsidiary, Novelis, which is the world's largest recycler of aluminum.
  • Vedanta Ltd is investing in new green businesses to leverage attractive adjacencies like green metals, renewables, green hydrogen, recycling, and has set up the world's first ESG Academy for in-house competency creation.
  • Companies such as AM/NS are planning to source power through renewable resources for their new expansions, with a strategy covering an incremental power requirement of 2000 MW through renewable sources.

Statistics:

  • India's coal resources account for around 55% of the country's energy needs.
  • Commercial primary energy consumption in India has grown about 700% in the past four decades.
  • The current per capita commercial primary energy consumption in India is about 350 kg/year, well below that of developed countries.
  • The EU has pledged to cut carbon emissions by at least 55% by 2030, compared with 1990 levels.
  • The EU's carbon border tax aims to levy a tax on non-EU firms exporting to the EU.
  • JSW Steel raised USD 1 billion in the USD Bond markets through a bond issuance in 2021.

Sources:

  • Bank of America's Head of Research, Amish Shah.
  • Tata Steel spokesperson.
  • JSW Steel spokesperson.
  • Prabodha Acharya, chief sustainability officer, JSW Group.
  • Dilip Oommen, CEO of AM/NS India.
  • Hindalco Industries.
  • Vedanta Ltd.
  • S&P Global.
  • Climate Bond Initiative.